Ethiopia Enacts Startup Law as Execution Becomes the True Test
- Ethiopia's House of People’s Representatives passed the Startup Proclamation during an emergency session in July.
- The proclamation defines a startup as a tech-driven business under three years old with annual revenues below 5 million birr.
- Startups will benefit from a five-year corporate tax exemption and preferential treatment in public procurement.
While the enactment of the Startup Proclamation is a significant milestone for Ethiopia's entrepreneurial landscape, its true impact will hinge on the government's ability to implement the law effectively. The challenges of execution, including bureaucratic alignment and infrastructure development, must be addressed to ensure that the law translates into real support for startups.
